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Indonesian ministry to cut wood production

JAKARTA- Indonesia's Forestry Ministry is to cut wood production from natural forests from the current rate of 5.7 million cubic meters, to 5.4 million cubic meters in 2005, Forestry Minister M Prakosa said on Tuesday.

Production from timber estates was expected to reach 22.8 million cubic meters, while forests in Java under Perum Perhutani management were expected to produce 847,800 cubic meters of wood, Prakosa said at a working meeting with the House of Representatives commission on agriculture.

With total wood production of 29.1 million cubic meters, the ministry was expected to earn Rp919 billion (US$109 million) of revenue consisting of Rp644 billion from the reforestation fund, a Rp269 billion provision for forest resources, and Rp6 billion in fees for 404,474 hectares of forest concession holders.

On the same occasion, legislators conveyed difficulties that had been faced by wood processing company PT Tanjung Raya Plywood when it came to getting raw material and tighter competition from China and Malaysia in the export market.

Responding to the problem, Prakosa said, the company's concessionary has fallen as its forest area was not appropriate for production anymore.

The ministry has suggested that the company develop a timber estate or import wood in order to get raw material supplies, Prakosa said.

(Asia Pulse/Antara)

Feb 19, 2004

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